Tesco steps up supermarket war

Wednesday 26 June 2002 23:00 BST

TESCO has resumed hostilities in the supermarkets price war, unveiling plans to slash prices by £60m. The country's largest grocer said it would cut the price of 500 products in 660 stores from Monday. Some prices would fall by 40%.

'No-one will be cheaper than Tesco,' the company said, as it extended the number of products it uses to compare prices with rival retailers. Over the last five years Tesco claims to have cut prices by more than £1.2bn. 'By reducing prices we sell more, which helps us buy for less and when we buy for less we sell for less.'

The grocers' share prices were all weaker in late morning trade, with Safeway leading the decliners, off more than 1%.